Due Diligence is an important process when purchasing property in Thailand. This process involves checking the legal status and history of a property before you purchase it. This will help you avoid dealing with fake owners or property associations that do not pay fees. It will also make sure the current owner is not behind on common area and management fees.
Property Law
When it comes to acquiring immovable property in Thailand, it is important to conduct due diligence before signing a purchase contract. This will help you ensure that the property is legally owned and can be sold. You should conduct a thorough search of the land registry and assess any building construction permits. In addition, you should consult a qualified property practitioner for assistance.
Performing due diligence in Thailand is especially important for foreign investors. In Thailand, it is a complex process to register property, which makes it more likely for land scams to occur. You should hire an attorney or company specializing in such cases to ensure your rights are protected.
Phases of Due Diligence
There are several phases involved in conducting due diligence. Each of these phases has specific requirements. For example, each one will require different documents. As a result, the team conducting the due diligence exercise must clearly define what it expects from the target company. This will help reduce impediments and speed up the process.
In the buyer’s phase, the team will review all information and pay special attention to red flags. This phase can take weeks, and even months, depending on the nature of the deal. If major problems are discovered during due diligence, the deal may be abandoned. During this stage, the target company will be available to answer questions and provide further information.
Check the Legal Issues
When conducting due diligence in Thailand, there are certain legal issues to take into account. First, you should verify whether the title deed is valid. This is necessary as land and property scams are common in Thailand. Also, you must check whether any leases, usufruct, superficies, and servitudes have been registered. Only property owners with properly registered rights to a property can sell it.
Another legal issue that you should consider is whether the property you are purchasing is owned by the same person as the seller. This is particularly important if you’re buying a property that’s been mortgaged or has a history of litigation.
Obtaining a Legal Opinion
Due diligence is an important part of buying property in Thailand. As property in Thailand is often very expensive, you want to ensure you’re getting the best deal possible. You should also ensure that the developer is reputable and has the financial resources to complete the project. Many projects in Asia are built off-plan, so it’s vital that you check whether the developer is financially stable and has the ability to complete the project. In addition, you should research the seller’s and developer’s background and check whether they’ve been involved in any court litigation.
When conducting due diligence in Thailand, it is essential to obtain a legal opinion before completing any transaction. Lawyers in Thailand have extensive experience in this field, so they can help ensure your transaction goes smoothly. It’s also important to have an excellent command of English, which is vital in the due diligence process.
Hiring a Lawyer
Due diligence is essential if you’re planning to invest in a property in Thailand. It involves an extensive check of a property’s details, including legal encumbrances. This process can help you avoid committing costly mistakes in property transactions. To learn more about this important process, watch this video.
Due diligence in Thailand can cover many different aspects, including human resources, employment contracts, and environmental permits and licenses. Due diligence can also include a review of the company’s treatment of its employees.
